Saturday, 12 September 2015

Chapter 9:Enabling Organization-Decision Making

Chapter 9:Enabling Organization-Decision Making

Decision Making

  • a model is a simplified representation or abstraction of reality
  • Transaction Processing Systems
  • Decision Support Systems 
  • Executive Information Systems
9.1 : Primary Reasons for Growth of Decision Making Information Systems


9.2: IT Systems in an Enterprise



Transaction Processing Systems
  • Online transaction processing(OLTP) is the capturing of transaction and event information using technology to process the information according to defined business rules,store the information,and update existing information to reflect the new information.
  • Transaction processing system(TPS) is the basic business system that serves the operational level(analysts) in an organization
  • Online analytical processing(OLAP) is the manipulation of information to create business intelligence in support of strategic decision making.
9.3 : Enterprise View of Information and Information Technology


Decision Support Systems
  • a decision support system(DSS) such as BostonCoach's models information to support managers and business professionals during the decision-making process.Three quantitative models are typically used by DSS:
  1. Sensitivity analysis is the study of the impact that changes in one(or more)parts of the model have on other parts of the model.
  2. What-if analysis checks the impact of a change in an assumption on the proposed solution.
  3. Goal-seeking analysis finds the inputs necessary to achieve a goal such as a desired level of  output.
9.4 : Example of What-if Analysis in Microsoft Excel



9.5: Examples of Goal-Seeking Analysis in Microsoft Excel



9.6: Interaction Between TPSs AND DSSs



Executive Information Systems
  • executive information system(EIS) is a specialized DSS that supports senior level executives within the organization.
  • consolidation,drill-down,and slice-and-dice are a few of the capabilities offered in most EISs:
  1. Consolidation involves the aggregation of information and  features simple roll-ups to complex groupings of interrelated information.
  2. Drill-down enables users to get details,of information
  3. Slice-and-dice is the ability to look information from different prespectives.
Digital Dashboards
  • digital dashboards integrate information from multiple components
  • a hot list of key performance indicators,refreshed every 15 minutes.
  • a running line graph of planned versus actual production for the past 24 hours.
  • a table showing actual versus forecasted product prices and inventories.
  • a list outstanding alerts and their resolution status
  • a graph of crude-oil stock market prices
  • a scroll of headline news from Petroleum Company news,an industry news service
9.7: Inrection Between TPSs and EISs



9.8: Visual Mining,NetCharts Corporate Financial Dashboard



Artificial Intelligence

9.9: Visual Mining,NetCharts Marketing Communications Dashboard


  • Intelligent systems are various commercial applications of artificial intelligence
  • Artificial intelligence(AI) simulates human intelligence such as the ability to reason and learn.
  • The ultimate goal of AI is the ability to build a system that can mimic human intelligence
  1. Expert System are computerized advisory programs that imitate the reasoning processes of experts in solving difficult problems.
  2. Neural Networks also called an artificial network,is a category of AI that attempts to emulate the way the human brain works.
  3. A genetic algorithm is an artificial intelligence system that mimics the evolutionary,survival-of-the-fittest process to generate increasingly better solutions to a problem.
  4. Intelligent Agents is a special-purpose knowledge-based information system that accomplishes specific tasks on behalf of its users.
Data Mining
  • Data-minimg software typically includes many forms of AI such as neural network and expert systems.
9.10: Data-Mining Tools Investment Forecast







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